Kamal Chadha –
Egypt’s president announced on Sunday last that the nation has experienced a staggering 60% drop in Suez Canal revenues, translating to a loss of over $6 billion in recent months. This decline is largely attributed to attacks by Yemen’s Houthi rebels, which have disrupted shipping routes in the Red Sea.
President Abdel Fattah el-Sissi made these statements during a graduation ceremony at the Police Academy in Cairo. He underscored the seriousness of the current developments, stating, “The developments taking place are extremely serious and could lead to an expansion of the conflict in the region, affecting stability.” El-Sissi emphasized that the Suez Canal, a critical source of foreign currency for Egypt, has seen a significant decrease in revenue over the past seven to eight months.
The ongoing attacks carried out by the Iran-backed Houthis have compelled shipping companies to reroute their vessels around the Red Sea, which directly impacts traffic through the Suez Canal, a vital link between it and the Mediterranean Sea. The Houthis have claimed their attacks are targeting vessels associated with Israel and its allies as an expression of solidarity with Hamas in Gaza.
This alarming situation poses not only an economic challenge for Egypt but also raises concerns about broader regional stability. The loss of revenue from the Suez Canal, crucial for the Egyptian economy, reflects the far-reaching impacts of geopolitical tensions on trade and security in the area. As the situation evolves, its effects on shipping routes, economic stability, and regional conflict dynamics will be closely watched.
Marex Media